Colorado Carryout Bag Fee

graphic image of a grocery bag

About the Carryout Bag Fee 

In 2021, the Colorado General Assembly enacted House Bill 21-1162, Management of Plastic Products. Beginning January 1, 2024, the act prohibits stores and retail food establishments from providing single-use plastic carryout bags to customers. Certain retail food establishments, and small stores that operate solely in Colorado and have 3 or fewer locations, may provide single-use plastic carryout bags. Between January 1, 2023, and January 1, 2024, a store may furnish a recycled paper carryout bag or a single-use plastic carryout bag to a customer at the point of sale if the customer pays a fee of 10 cents per bag or a higher fee adopted by the municipality or county in which the store is located.

Beginning January 1, 2024, a store may furnish only a recycled paper carryout bag to a customer at the point of sale at a fee of 10 cents per bag or a higher fee imposed by the municipality or county in which the store is located. 

Read the full text of Colorado House Bill HB21-1162

Remittance Process

A store is required to remit, on a quarterly basis beginning April 1, 2024, 60% of the carryout bag fee revenues to the municipality or county within which the store is located and may retain the remaining 40% of the carryout bag fee revenues.

Retailers must remit Carryout Bag fees collected, using this Return Fee Form (PDF). This form must be submitted, even if the retailer did not collect more than $20 in carryout bag fees and will not be submitting any money. Returns are due on the 20th day of the month, following the reporting quarter. The return is due the next business day if the 20th is on a Saturday, Sunday, or legal holiday.

  • 1st Quarter (January to March): due April 20th 
  • 2nd Quarter (April to June): due July 20th 
  • 3rd Quarter (July to September): due October 20th 
  • 4th Quarter (October to December: due January 20th

Exemptions

The carryout bag fee does not apply to a customer that provides evidence to the store that the customer is a participant in a federal or state food assistance program. The act does not apply to materials used in the packaging of pharmaceutical drugs, medical devices, or dietary supplements or any equipment or materials used to manufacture pharmaceutical drugs, medical devices, or dietary supplements.